Good news for working parents! The UK government has announced a boost in childcare support through Universal Credit, helping families cover up to 85% of their childcare costs.
Starting in April 2025, families with two or more children can claim up to £1,739.37 per month, up from the previous cap of £1,630.15. That adds up to more than £20,000 a year in support. Parents with just one child can receive up to £1,014.63 per month, which equals over £12,000 a year.
Who Can Get This Support?
To qualify for the childcare payment increase, you must meet these requirements:
Both parents (or a single parent) must be working – or have a confirmed job starting soon.
Your child must be under 16 – the support is available until August 31st after their 16th birthday.
You must use a registered childcare provider – this includes nurseries, childminders, after-school clubs, and certain school-based care.
You must be using childcare to enable you to work – the costs must be work-related.
How to Claim Your Childcare Costs
If you’re eligible, Universal Credit will reimburse your childcare costs in arrears—meaning you pay upfront and then claim the money back. To ensure you get your money quickly, follow these steps:
🔹 Report your childcare costs as soon as you pay – don’t wait too long, or you may miss out on payments!
🔹 Keep all receipts and invoices – proof of payment is required for reimbursement.
🔹 Submit claims within the right time frame – you need to report your costs by the end of the next Universal Credit assessment period after you pay.
Worried About Upfront Costs? Help is Available!
Since Universal Credit reimburses childcare payments after you’ve paid them, some parents struggle with the upfront cost. The government offers two solutions:
Flexible Support Fund – You may be able to get help with upfront childcare costs like deposits and initial fees. Ask your Universal Credit work coach about this option.
Budgeting Advance – If the Flexible Support Fund isn’t available, you might qualify for a Budgeting Advance, which is a loan to help cover essential costs, including childcare. Keep in mind that this must be repaid through future Universal Credit payments.
More Free Childcare Coming in 2025!
On top of this financial support, the government is rolling out 30 hours of free childcare per week for working parents of children aged 9 months to 2 years, starting in September 2025.
To qualify for this free childcare, both parents must be working and earning at least 16 hours per week at the National Minimum Wage.
Final Thoughts – Don’t Miss Out on This Support!
With childcare costs rising, this increased Universal Credit support could be a huge financial relief for families. If you meet the eligibility criteria, make sure to claim what you’re entitled to!
For more details and to apply, visit the official UK government website or speak with your Universal Credit work coach.
